NAPCO Security Technologies (NASDAQ:NSSC) Reaches New 52-Week Low on Disappointing Earnings

NAPCO Security Technologies, Inc. (NASDAQ:NSSC) shares reached a new 52-week low during mid-day trading on Monday after the company announced weaker than expected quarterly earnings. The stock traded as low as $31.03 and last traded at $31.6610, with a volume of 25,236 shares. The stock had previously closed at $39.35.

The industrial products company reported $0.34 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.38 by ($0.04). NAPCO Security Technologies had a net margin of 21.27% and a return on equity of 31.41%. The company’s revenue for the quarter was up 1.6% on a year-over-year basis. During the same period in the prior year, the company posted $0.34 EPS.

NAPCO Security Technologies Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, October 2nd. Investors of record on Friday, September 11th were issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 2.1%. This is a boost from NAPCO Security Technologies’s previous quarterly dividend of $0.15. The ex-dividend date was Friday, September 11th. NAPCO Security Technologies’s dividend payout ratio (DPR) is 56.20%.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Weiss Ratings raised shares of NAPCO Security Technologies from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Needham & Company LLC reissued a “buy” rating and set a $49.00 target price on shares of NAPCO Security Technologies in a report on Friday, August 21st. Benchmark reaffirmed a “buy” rating on shares of NAPCO Security Technologies in a research note on Tuesday, August 25th. Finally, DA Davidson set a $52.00 target price on NAPCO Security Technologies in a research note on Tuesday, August 25th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $51.33.

Insiders Place Their Bets

In other NAPCO Security Technologies news, Chairman Richard Soloway sold 379,529 shares of the business’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $34.50, for a total value of $13,093,750.50. Following the transaction, the chairman owned 621,958 shares of the company’s stock, valued at approximately $21,457,551. The trade was a 37.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Donna Soloway sold 28,000 shares of NAPCO Security Technologies stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $35.98, for a total value of $1,007,440.00. Following the transaction, the director owned 20,962 shares of the company’s stock, valued at $754,212.76. This represents a 57.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 523,962 shares of company stock valued at $18,257,168. Company insiders own 2.96% of the company’s stock.

Institutional Trading of NAPCO Security Technologies

Large investors have recently modified their holdings of the business. Bank of America Corp DE purchased a new position in NAPCO Security Technologies in the second quarter worth about $6,019,000. Deutsche Bank AG acquired a new stake in shares of NAPCO Security Technologies in the 2nd quarter valued at approximately $1,414,000. Corient Private Wealth LP raised its position in shares of NAPCO Security Technologies by 326.5% in the 2nd quarter. Corient Private Wealth LP now owns 48,576 shares of the industrial products company’s stock valued at $1,845,000 after purchasing an additional 37,186 shares in the last quarter. Fundsmith LLP grew its position in shares of NAPCO Security Technologies by 58.2% during the 2nd quarter. Fundsmith LLP now owns 606,974 shares of the industrial products company’s stock valued at $23,053,000 after buying an additional 223,378 shares during the last quarter. Finally, Principal Financial Group Inc. boosted its holdings in NAPCO Security Technologies by 239.7% in the 1st quarter. Principal Financial Group Inc. now owns 225,314 shares of the industrial products company’s stock valued at $8,875,000 after purchasing an additional 158,984 shares during the period. Institutional investors own 85.07% of the company’s stock.

NAPCO Security Technologies Price Performance

The stock has a market capitalization of $1.15 billion, a price-to-earnings ratio of 26.25 and a beta of 1.49. The business has a 50 day simple moving average of $36.51 and a 200-day simple moving average of $39.11.

NAPCO Security Technologies Company Profile

NAPCO Security Technologies, Inc develops, manufactures and sells electronic security products and solutions for commercial, institutional, industrial and residential applications. Its offerings include intrusion alarm systems, access control systems, fire alarm products, locking systems and related communications technologies.

The company markets products under brands that include NAPCO, StarLink, Alarm Lock, Continental Instruments and Firewolf. Its solutions are designed to support security dealers, alarm monitoring providers, systems integrators and other professional-channel customers, including applications in schools, healthcare facilities, businesses and government buildings.

Founded in 1969, NAPCO is headquartered in Amityville, New York.